Tax not calculating properly

I am unable to understand what I am doing wrong. I am simply adding a 7.5% tax and its not calculating as it should be.

According to my sense, it should be Rs. 2,850 but instead its calculating Rs. 2651.

please help its urgent.


You have made the sales invoice tax-inclusive and entered 9500 as the unit price. So Manager backs the 7.5% tax out of the total. The invoice clearly says the total includes 2651.15 in tax. This is equivalent to a subtotal of 35,345.85 plus tax of 2651.15. (The total is not quite 38,000 because of rounding differences.)

If you want the tax applied to the full 38,000, do not check this box on the sales invoice entry screen:

. The invoice will look like this:

(My example is with 10% tax rather than 7.5%, but I think you will understand.)